There are several types of insurance policies available to ensure that your mortgage will be paid in the event that you are unable to do so.
Life insurance is recommended to cover the outstanding mortgage balance if you pass away, ensuring your family is not burdened with the debt.
Critical illness cover provides a lump sum payment if you are diagnosed with a serious illness, helping to cover mortgage payments during difficult times.
Income protection insurance pays a regular income if you are unable to work due to illness or injury.
It is important to discuss these options with your mortgage broker or financial adviser to ensure that you and your loved ones are financially protected. Nonetheless, it is your decision as to how you want to proceed.
Most mortgage advisors can also help you with your insurance needs. They are legally required to make sure you understand what might happen if you or your loved ones can’t pay the mortgage. Because of this, they or someone in their team will be qualified and authorised to arrange insurance for you. Please confirm this with your adviser when you apply for your mortgage.